Sensex zooms by 155 points

Sensex zooms by 155 points
ENS ECONOMIC BUREAU

MUMBAI, FEBRUARY 21: With the Union budget less than 10 days away, punters have started expanding their speculative positions. The Bombay Stock Exchange Sensex rose smartly by 155 points on Monday as Hindustan Lever, infotech and auto shares stole the limelight amidst sustained speculative buying.

Sensex opened more than 150 points higher due to the jump in Hindustan Lever shares and then maintained gains as the rally spread to other stocks. The index ended 155.24 points higher at 5,876.89, up from last Friday's 5721.65 points. The NSE Nifty Index closed 1.93% higher at 1,750.95 points.

Brokers said speculators were actively pushing up select software shares, while funds stuck to select index stocks. The start of new account also boosted the sentiment and local operators made fresh positions in several counters. Hindustan Lever opened eight per cent up at Rs 2,689.15 on news that it is considering a stock-split. Auto stocks jumped back into limelight after weeks of downward slide. Telco and Bajaj Auto hitthe upper end of the circuit filter.

Telco rose 7.98 per cent to Rs 165.85 on hopes that its passenger car division would soon be spun off in collaboration with a foreign firm. Bajaj rose by 7.99 per cent to Rs 338 while Ashok Leyland rose 7.95 per cent to Rs 95.70 on buying support. Pharma multinationals reacted on profit-taking as investors shifted attention to domestic pharma stocks due to poor results announced by the multinationals. The results announced lately by these firms - especially Glaxo and Merck - were below market expectations.

Technology shares gained strongly with Infosys Technologies rising 4.42 per cent to Rs 10,275 after touching Rs 10,600, within a striking distance of its all-time high of Rs 10,759.95. Wipro and Pentasoft Technologies both hit the upper end of the eight per cent circuit filter. Wipro has hit the eight per cent limit continuously in the last eight trading sessions. Satyam Computer Services ended over six per cent higher at Rs 4,969.20.

DSQ Software and SilverlineIndustries were other IT counters which moved up smartly. Zee Telefilms also made smart gains.

Put Wipro on `spot' to check rigging
MUMBAI: With manipulation in Wipro stock continuing, experts feel that the SEBI should shift the scrip to the `spot' basis. Wipro (with a face value of Rs 2) jumped by yet another 8 per cent, or Rs 712.90, to Rs 9,624.50 on Monday. At this level, the scrip is worth Rs 48,122 when calculated on the basis of Rs 10 face value. Wipro, which is now in the A group where carry-forward is allowed, has zoomed by over 250 per cent from around Rs 2,900 in the last three weeks. ``There seems to be excessive speculation in the scrip.

The exchanges should shift the scrip to the spot delivery system to curb excessive speculation in Wipro. Surprisingly, SEBI and exchanges have failed to curb the rigging in Wipro. SEBI should investigate the rigging in Wipro. Investors will burn their fingers if the regulator and exchanges are not careful.'' In the spot system, shares will besold and bought only on delivery basis.